H.R.1723 - Fair FHA Appraisals Act of 2007 Sponsor: Charles Wilson / 110th Congress

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Title
110th Congress - To amend the National Housing Act to ensure fair appraisals in connection with mortgages insured under the FHA single family mortgage insurance program. hidemore...
Summary
To amend the National Housing Act to ensure fair appraisals in connection with mortgages insured under the FHA single family mortgage insurance program. (by CRS)
Status
The bill has been introduced.
Bill status:
Referred to the Subcommittee on Housing and Community Opportunity.
Introduced:
3/27/2007
Sponsor:
Charles Wilson

Contribution data provided by the Center for Responsive Politics (OpenSecrets.org)

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HR 1723 by Navid Khajehnajafi, Aug 7, 2008 (10:54pm)

Proponents argue that mortgage brokers, realtors, lenders, and builders have the ability to manipulate appraisals for gain because they are the ones paying the appraisers, and may use this leverage to intimidate, coerce, bribe, or otherwise influence appraisers so that their assessments reach a targeted value.

This interference is partly attributed to the reliance of these industries on commission and the need to fund loans to ensure more commissions and future loans. However, such interfering unnaturally drive prices up, making similar homes less affordable to potential home buyers and, as a result, artificially creating “bubbles” in the housing market that may lead to crises in home prices if built up over time.

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